Summary
President Donald Trump's tariffs could influence Social Security benefits through a cost-of-living adjustment (COLA), expected in 2026. The adjustment is linked to inflation, which has risen due to the tariffs. As a result, Social Security payments might increase, but the rising costs also decrease their value.
Key Facts
- President Trump's tariffs might affect the cost-of-living adjustments for Social Security starting in 2026.
- The COLA is based on inflation levels from the previous year.
- Over 70 million Americans who receive Social Security benefits could see higher payments due to increased inflation.
- A 2.7% to 2.9% increase in Social Security benefits is predicted for 2026.
- The tariffs have pushed prices up roughly 2.3% in the short term.
- The COLA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July to September to calculate changes.
- Higher COLA also results in increased Medicare Part B premiums, reducing the net gain for beneficiaries.
- The announcement of new benefit amounts might be delayed due to political standstills and potential government shutdowns.
